Your competitive analysis should identify the direct competitors your business faces. Direct competitors are other construction businesses.
In your plan, you need to detail the other construction businesses with which you compete. Most likely, your direct competitors will be construction businesses located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What services/products do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask prior customers of your competitors what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide superior construction services?
- Will you provide construction services that your competitors don’t offer?
- Will you make it easier or faster for customers to acquire your services?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.